Embraer was founded in 1969 by theBrazilian government as anational champion for domestic aerospace technology. It initially focused on supplying military aircraft to theBrazilian Air Force, but by the 1980s began producing a series of successful commuter and regional airliners for export. The company was privatized in 1994 and began expanding to the production of larger regional airliners and smallerbusiness jets. In 2000, Embraerbecame public as alimited company (Sociedade Anônima) with its ownshares publicly traded in both the United States (NYSE) and Brazil (B3).
Embraer hasdivisions for commercial, executive, military, and agricultural aviation; it also maintains anincubator for aerospace technologies and businesses. While the company continues producing aircraft for the defense sector, it is best known for theERJ andE-Jet families ofnarrow-body short to medium rangeairliners, and for its line ofbusiness jets, including the market-leadingPhenom 300.[6] As of May 2024, Embraer has delivered more than 8,000 aircraft, including 1,800 E-Jet planes.[7]
The Brazilian government contributed to Embraer's early growth by providing production contracts.[14] The company sold solely to the domestic market until 1975.
In addition to its own line of aircraft, beginning in 1974, Embraer was licensed by the United States'Piper Aircraft to develop, produce, and market its light airplanes,[18] as Brazil was one of the world's leading importers of small single- or twin-engine aircraft.[19] Piper first put togetherknock-down kits in its U.S. factory for Embraer to then assemble and market in Brazil and Latin America.[20] By 1978, most parts and components were being sourced by Embraer locally.[18] The aircraft were sold as theEMB 820 Navajo (Piper Navajo Chieftain),EMB 810 Seneca (Piper Seneca III),EMB 720 Minuano (Cherokee Six), EMB 710 Carioca aircraft (Cherokee 235 Pathfinder) and the EMB 711 Corisco (Cherokee Arrow II). Between 1974 and 2000, nearly 2,500 license-built Pipers were produced by Embraer.[18]
By 1980, Aerotec's main business was producing components for Embraer. However, around this time, theBrazilian Air Force became interested in an upgraded version of the Uirapuru. A prototype, designatedUirapuru II, was built; but, by the time it flew, the Air Force no longer required it. A small number were built for export. In 1987, the firm was sold to Embraer.
Born from a Brazilian government plan and having been state-run,[8] Embraer eventually started a privatisation process in 1992 alongside other state-run companies, such asTelebrás andVale. Privatisation was a key policy of the economically liberal government ofFernando Collor, elected in the1989 presidential election.[19]
Embraer was sold to private investors on December 7, 1994,[10][20] which helped it avoid a looming bankruptcy.[8] The Brazilian government retained interest through possession ofgolden shares, which allow it veto power.[17] Embraer continued to win government contracts throughout the 2000s and 2010s.[citation needed]
In the mid-1990s, the company pursued a product line focused on small commercial airplanes over the military aircraft that had previously made up the majority of its manufacturing.[8] It soon expanded to the production of larger regional airliners in the 70–110 seat range, and smallerbusiness jets.[17]
By May 2019, Embraer considered developing anew family of turbopropregional airliners in the 50–70 seat range, complementing theE-Jet E2, so as to free engineering resources.[22][23] It would compete against olderATR andDash 8 designs for 1.5 to 2 h flights over 500–700 nmi (930–1,300 km).[24] In August 2021, Embraer released a new configuration with quieter aft-mounted engines for a 70-90 seat aircraft, with the E-Jet cross-section, aiming for a 2022 launch and a 2027/2028 service entry.[25]
At the 2000Farnborough Airshow, Embraer introduced theLegacy 600, abusiness jet variant of theEmbraer Regional Jet, which entered service in 2002.[26]Embraer Executive Jets was created as a dedicated subsidiary in 2005. That same year, thePhenom 100 was envisioned as anair taxi similar to theEclipse 500, competing withCessna andHawker Beechcraft. It was introduced in 2008 and is the basis of the largerPhenom 300. The midsizeLegacy 450 andLegacy 500 were jointly developed as clean sheet designs, while theLineage 1000 is a VIP version of theE190. In 2016, Embraer delivered its 1,000th executive jet and had a market share of 17% by volume, though it lacked an ultra-long-range large cabin jet.[27] In October 2018 Embraer announced two new business jets—thePraetor 500 in the midsize cabin category—and thePraetor 600 in the super midsize category.[28]
On April 19, 2007, Embraer announced it was considering the production of a twin-jet military transport. Work began in May 2009 with funding from the Brazilian Air Force.[29]Correios, the Brazilian postal service, has shown interest in buying this aircraft.[30][31] Using much of the technology developed for the Embraer 190, the C-390 would carry up to 23 tons of cargo[32] and aims to replaceCold War-era cargo aircraft.[33]
While firm orders for the yet-to-be-producedKC-390 transport had not yet been made in the fall of 2010,[29] Argentina asked for six examples and several other South American nations also expressed interest.[34][35]
Brazil and Canada engaged in an international, adjudicated trade dispute over government subsidies to domestic plane-makers in the late 1990s and early 2000s. TheWorld Trade Organization determined that both countries had provided illegal subsidies to what were supposed to be privately owned industries. Brazil ran an illegal subsidy program, Proex, benefiting its national aviation industry from at least 1999–2000, and Canada illegally subsidized its indigenous regional airliner industry including in export contracts, comprisingBombardier Aerospace.
On July 5, 2018, ajoint venture with Boeing was announced that would have resulted in Boeing owning 80% of Embraer's commercial aviation division.[36] This was seen as a reaction to Airbus' acquisition of a majority in the competingBombardier CSeries the previous year.[37] Under the 2018 plan, Embraer would retain its executive business jet and itsdefence business.[38] The resulting division would be known asBoeing Brasil – Commercial, though it was unclear whether the aircraft would be rebranded as Boeing models.[39]
On November 18, 2019, Boeing and Embraer announced another joint venture, at 49% and 51% respectively, to promote and develop new markets for the C-390 Millennium tactical transport aircraft; the resulting entity would be calledBoeing Embraer – Defense and would begin operating after regulatory approvals and closing conditions.[40]
In April 2020, Boeing canceled its acquisition of Embraer's commercial operations after being heavily affected financially by the air crisis initiated by theCOVID-19 pandemic and by the737 MAX groundings.[41][42][43]
In November 2020, Embraer announced that its loss for the third quarter of the year is $121 million due to the COVID-19 pandemic and the travel restrictions.[44]
In December 2019, Embraer and the Brazilian Air Force tackled the development of a lightmilitary transport aircraft.[45] TheShort Take Off Utility Transport (STOUT) would replace its 64 EMB-110 Bandeirante (average age of 38.3 years) and 19 EMB-120 Brasilia (average age of 26.5 years) with similar dimensions.[45]
Embraer is organized into four segments: Commercial Aviation, which manages the development, production, sale, and lease of commercial jets, as well as the provision of aviation support services; Defense & Security, which consists of research, development, production, modification, and support for military defense aircraft, and related products and services; Executive Aviation, which concerns the development, production, and sale of executive jets, and support services; and Other, which entails the production of structural parts, mechanical and hydraulic systems, agriculturalcrop-spraying aircraft, and customer training.[46]
OGMA – Indústria Aeronáutica de Portugal (Alverca do Ribatejo, Portugal) – aircraft component maintenance, repair and manufacturing, plus aircraft maintenance services.
Embraer Aero Seating Technologies – Inaugurated in September 2016 in the city ofTitusville, Florida, Embraer Aero Seating Technologies produces aircraft seats.[56]
Mesa Unit (Located inMesa, Arizona, U.S.) – Implemented in 2008, performs maintenance, repair and overhaul services on the Phenom and Legacy executive aircraft line.[57]
Windsor Locks Unit (Located inWindsor Locks, Connecticut, U.S.) – Implemented in 2008, as well as the Mesa Unit, also performs maintenance, repair and revision services in Embraer's executive line.
Melbourne Unit (Located inMelbourne, Florida, U.S.) – Implemented in 2011, it is the first unit in the United States to carry out the final assembly of aircraft. It produces the line of executivesPhenom 100 andPhenom 300. In November 2012 work began on an Engineering and Technology Center at the Melbourne facility.
ECC Leasing – Embraer's in-house leasing division, based inDublin,Ireland, managing and re-marketing the Embraer aircraft portfolio owned directly by the manufacturer.[58]
Embraer's commercial airliner portfolio, as well as theKC-390, would be part of two separate joint ventures withBoeing. In the case of the civil aircraft line, Boeing would own 80% of the resulting firm.[62] (canceled)
^abcdMonks, Robert AG; Minow, Nell (2008),Corporate Governance, John Wiley & Sons, pp. 356–59
^abc"EMB 710 Carioca",Aircraft History, BR: Embraer History Center, archived fromthe original on 2022-10-30, retrieved2011-05-01.
^abEckhouse, John (January 12, 1991), "Brazil on Road Peddling State-Owned Enterprises",The San Francisco Chronicle (final ed.), San Francisco,CA,US, p. B.1.
^Facilities, Embraer, September 11, 2012, archived fromthe original on 2010-12-15,Embraer Aircraft Holding, Inc. 276 SW 34th Street Fort Lauderdale, FL 33315 USA […] Embraer Aircraft Holding, Inc. 1700 Pennsylvania Ave. NW Suite 200 USA Washington, DC 20008
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